NASFAA Submits Comment on Higher Education Affordability Act

At the request of Senator Tom Harkin (D-IA), chairman of the Senate Health, Education, Labor and Pensions (HELP) Committee, NASFAA submitted comments on the Higher Education Opportunity Act (HEAA). The discussion draft, released in June 2014, serves as a marker for future reauthorization efforts. NASFAA’s comments outline areas of support and concern with the goal of informing the final legislation that Congress will continue to work toward next year.

The comments commend the HEAA’s focus on increasing affordability, addressing loan debt, strengthening accountability, and improving transparency. They also offer appreciation for the inclusion of a number of proposals that the financial aid community has championed through NASFAA’s HEA reauthorization recommendations. The following specific provisions are addressed in the comments:

Proposals Supported by NASFAA:

Reinstatement of Year-Round Pell Grants

Limited Restoration of Ability to Benefit Eligibility Criterion

Mandated Use of Prior-Prior Year (PPY) Income Data

Early Notification of Potential Pell Grant Eligibility

Consolidation of Repayment Plans

Title XI Reports and Studies

Private Student Loan Bankruptcy Protections

Elimination of Origination Fees

Automatic Enrollment in IBR for 150 Days Delinquent Borrowers

Provision of Funds for DREAM Eligible Students

Expansion of the National Student Loan Data System (NSLDS)

Required Consumer Testing of Consumer Information Products

Areas of Concern:

Proposed Language for Year-Round Pell

Pell Usage Notifications

Standardized Award Letters

Complaint Resolution and Tracking System

Annual Counseling for Borrowers

Repayment Rate and Speed-Based Repayment Rate

Student Default Risk

Counseling for Parent PLUS Borrowers

Mandatory Program Reviews

For a full analysis of the HEAA and NASFAA’s reauthorization materials visit nasfaa.org/reauth.